Foreign Stock Listings: Benefits, Costs, and the Accounting Policy Dilemma
13 Pages Posted: 18 Jan 2011 Last revised: 15 Sep 2022
Date Written: August 5, 1991
As firms enter foreign markets for customers and capital, accounting practitioners must wrestle with cross-border differences in languages, customs, accounting conventions, and auditing standards. Stock exchanges in the U.S. claim that they are at a competitive disadvantage because stringent U.S. reporting requirements discourage foreign firms from listing here.
This study presents evidence on three key questions raised by these developments:
(1) What are the benefits and costs to listing on a foreign stock exchange?
(2) Tb what extent do accounting disclosure requirements influence foreign listing decisions?
(3) What are the accounting policy issues posed by foreign stock exchange Ustings and how have regulatory authorities responded?
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